Benefits from the larger scale with acquisitions, which will provide potential for better profit margins; Moderate expected leverage of around 2.5x for 2011; and Likely to continue to generate net free cash flow after capital expenditures and dividends over the next few years. Business communications services is a highly competitive, fragmented market; Declining base of business in the consumer Internet access segment; Integration risk because integrating ITC and One Communications could be challenging and prompt customer service issues that could accelerate overall churn; and Contracts renewals could be subject to some pricing pressures as competitors become aggressive in the market. The ratings on EarthLink Inc. reflect the highly competitive nature of the business-oriented telecom markets in which it operates and...
Companies mentioned in this report are:
- EarthLink Inc.
- ITC DeltaCom Inc.
- Broadview Networks Holdings Inc.
- PAETEC Holding Corp.
- Vonage Holdings Corp.
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